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Credit cards could generate for Dollarama sales (con't)

That’s unlike rival dollar chains, like Dollar Tree Canada - which has made recent dramatic strides into the Canadian market - which accept credit cards.

Dollarama did not respond to a request for comment.

But retail analysts say it’s only the latest iteration in strategy of which one calls “the best dollar store in the world.”

That’s John Williams of JC Williams Group in Toronto, who said Dollarama is “brilliant” at being able to “break the mold,” when it comes to selling itself as a dollar store yet incrementally, and in a stealth way, raising prices.

Some products on the Dollarama shelves now price at $2, $3, even $4.

“So I’m not surprised that they’re breaking the mold and accepting credit cards,” Williams says.

Williams says since Dollarama offers such a vast selection of products – he admits to being a loyal shopper himself – and with higher price points, customers are spending more money, so paying by credit card makes more sense.

But he says the move might also reflect more competition.

“So I’m not surprised that they’re breaking the mold and accepting credit cards,” he says.

Another analyst, Ed Strapagiel, who has commented extensively about Canada’s dollar store industry, says “it’s always good” for stores to allow more payment options which “can encourage customers to spend more.”

Because of Dollarama’s mammoth and continuing expansion – there are now at least 1000 outlets – the chain may be of a greater scale “for negotiating merchant fees for credit card processing.”

It’s not the first-time Dollarama has tried credit cards.

“Dollarama has already experimented with credit cards, once in 2010 and in 2016 in BC,” Strapagiel says.

“It appears they've now decided the time is right.” 

WindsorOntarioNews.com


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